Ride hailing app, Uber has announced a major shift in its payment model for auto drivers, shifting to direct cash-only model. This means that the customers will need to pay to the auto driver directly in cash, as any other digital payments like Uber credits will no longer be accepted.
While Uber credits can still be used for other rides, it will not be implemented for payment to auto-drivers. A notification to this effect has been sent by the Uber to its customers, indicating that the new changes will be implemented from February 18.
“If you are our member, Uber One related changes have already been communicated
separately.
We understand this is a change, but rest assured, the ride experience remains as seamless as always. We’re excited to share this new step towards simplicity with you,” the notification from Uber said.
Based on multiple reports, the move to shift to cash-only payment system for auto-drivers is expected to keep Uber competitive in the ride-hailing industry.
Already there are multiple ride hailing services including Rapido that have implemented this system, wherein the auto drivers pay a fixed fee to access the platform and will not have to pay commission to the app for each ride/trip.